India:The Dancing Elephant

Group 6:Hiroki Sawayanagi Jenessa EvansScott Parker Carter DredgeAdam Merryweather

Overview: From Tusk to Toes

• Background• Current Situation• International Aspects• Special Problems• The Future• Culmination

Background of India

• History• Demographics• Social Class

(Caste)• Religion

History

• Indus Valley Civilization• One of the four biggest ancient

civilizations

• Rise and Fall of Dynasties• Maurya, Gupta, Delhi Sultanate, Mughal

Dynasties

• Colony of England• Trade by England East India

Company

• Independence• On August 15, 1947• Separate to Pakistan (Islam nation)

History

• Mahatma Gandhi• Major political and spiritual leader

of the Indian independence movement

• Pioneer of Satyagraha (non-violent civil disobedience)

• Honored as the Father of the Nation in India

• Gandhi's teachings have inspired civil rights leaders such as Dr. Martin Luther King Jr.

Demographics

• 2nd most populous county (1.1 billion)• Variety of races, but less racial

integration• 23 official languages• Hindi and English are used in Union

Government of India for official purpose

Caste

• The traditional hereditary system of social stratification

• Caste is prohibited, but not eliminated

• Mainly divided into four classes (Brahmin, Kshatriya, Vaishya, and Shudra)

• Untouchable (not treated as human) exists outside Caste

Religion

• Hinduism is the major religion

• The 3rd largest Islam country 　

• The origin of Buddhism

Religion

India's Religion Distribution

14%

2%1%2%

81%

HinduIslamChristianityShikhismBuddhism

Economic History

• Colonial Era – 1757 to1947

• Post Independence – 1947 to Present• Inherited very poor economy• Policy leaned towards protectionism• Direct and indirect state intervention

Current Economy

• Mixed economy• Combines capitalist

market and socialist command economies

• Since 1990, has shifted towards capitalism

• Certain services still controlled (i.e. railways and postal system)

Current Economy

• Second fastest growing major economy

• 8.9% GDP growth rate at the end of 1st quarter 2006-2007

  2005 Real GDP Rank (PPP) $m

       

  World   61,027,505

  European Union 12,427,413

       

1 United States 12,277,583

2 China   9,412,361

3 Japan   3,910,728

4 India   3,633,441

5 Germany   2,521,699

6 U.K.   1,832,792

7 France   1,830,110

8 Italy   1,668,151

9 Brazil   1,576,728

10 Russia   1,575,561

11 Canada   1,104,701

Currency

• The Rupee is the only legal tender accepted

• Exchange rate10/23/06• 45.3 Rupee / Dollar

• Has depreciated in recent years against most currencies except the U.S. dollar

Financial Institutions

• Reserve Bank of India

• Bombay Stock Exchange

• National Stock Exchange• 3rd largest in the

world based on transactions

Agriculture and Industry

• 2nd in the world in farm output• 18.6% of 2005 GDP• 60% of total workforce• Low productivity

• Illiteracy• Small average land holdings• Inadequate adoption of

modern practices• Inadequate irrigation

• 14th in the world in factory output• 27.6% of GDP• 17% of total

workforce

• Post-liberalization• Private sector faced

foreign competition

Services

• 15th in the world in services output• 23% of total workforce• Accounts for 53.8% of GDP• Fastest growing sector, 7.5% growth

rate• Business services (IT, outsourcing)

A Few Quick Stats

• Number of bank branches have increased from 10,120 in 1969 to 98,910 in 2003

• Unemployment still at 7.32% as of 2000• Nearly 100 million people unemployed

• Poverty has been greatly reduced but…• 22% still below the poverty line

International Organization Participation

• Commonwealth of Nations

• UN• ESCAP• G-77

• Asian Development Bank

International Organization Participation Continued

• SAARC• SAFTA• WTO

Exports

• 2005 Estimate: $76.23 Billion

• Export Goods:• Textile Goods• Gems and Jewelry• Engineering Goods• Chemicals • Leather Manufactures

• Main Partners:• US- 18%• China- 8.9%• UAB- 8.4%• UK- 4.7%• Hong Kong- 4.2%

Imports

• 2005 Estimate: $113.1 Billion

• Import Goods:• Crude Oil• Machinery• Gems• Fertilizer• Chemicals

• Main Partners:• China- 7.2%• US- 6.4%• Belgium- 5.1%• Singapore- 4.7%• Australia- 4.2%• Germany- 4.2%• UK- 4.1%

Foreign Direct Investment

• Small Player in Manufacturing• New Technology Superpower

• High-tech companies with branches in India:

• Motorola• HP• Google• Cisco Systems

Special Economic Zones

• Policy announced April 2000• Areas were deemed to be foreign territory for

purposes of:• Trade Operations• Duties• Tarriffs

• 15 Zones total• A few locations:

• Santa Cruz (Mumbai)• Falta (West Bengal)• Surat (Gujarat)

How’s your Indian geography?

• Agra• Calcutta• New Dehli

Special Problems

• Infrastructural • Water distribution• Sanitation

Special Problems

• Inefficient legislation• Intellectual property rights • Trade barriers

Future

• Overcoming Poverty

• 81% earn less than $1 a day

• China as an example

Future

• Need for more workers• Enticing foreigners

Future

• Improved government• Bribery• Overcoming Caste System

Future

• Better Infrastructure• More Efficient

Transportation• US sharing nuclear

technology

So Watch This Elephant Dance!

• Future lies in the people!!